1. Banking
What should you do with the money you save?

2. Growing Your Savings
Saving is an important step in building your financial future. After you have created a budget, set your goals, and identified how much money you can save each month or year, think about what you will do with the money you have saved. Here are some choices:
Keep the money at home in a safe place
Put your money in a savings account or a GIC to earn interest
Buy a Treasury Bill or a Canada Savings Bond to earn interest
Buy some stocks to earn dividends or capital gains

3. The BaraniukBucks™Challenge
Which of the following investment choices would involve the greatest risk but also the greatest reward?
Savings Account
GIC
Mutual fund
Treasury bill

4. Comparing Financial Institutions
Banks *Financial institutions where people deposit their money in order to keep it safe *A bank is a business—it needs to make money (by charging interest on loans and service fees on financial services) *In order to entice customers, banks will offer to pay interest on money deposited with them and to offer services that other banks might not
Why might banks offer special deals and services to students/youth?
What “extra” services do some banks provide?

5. Comparing Financial Institutions
Credit Unions *Offer financial services similar to banks *Major difference is that a credit union is a co-operative (this means that you must be a member of the credit union to join) *Credit unions generally offer higher interest rates on savings, lower borrowing rates and fewer service fees *Credit union members elect a board of directors from their membership and each member has one vote in board elections
Why might banks offer special deals and services to students/youth?
What “extra” services do some banks provide?

7. Comparing Financial Institutions
Trust Companies *Offer financial services similar to banks *Major difference is that they also offer services such as managing estates, trust funds and pension plans
Why might banks offer special deals and services to students/youth?
What “extra” services do some banks provide?

8. Banking—Key Concepts
What is the difference between a chequing and savings account?
What types of services do banks provide?
What types of fees do banks charge?
Why is it important to monitor your bank account activities?

9. Debits (withdrawals) and Credits (deposits) to your bank account are recorded so that you can monitor your bank account balance and spending activities. If you know who you wrote a cheque to (and the #) these can also be cancelled when necessary. Now with online banking, you can usually verify debit card expenditures immediately!

10. Picking a place to save your money
Review material for banking section

11. “Very Interest-ing” Interest
Simple Interest Interest that is calculated yearly (or once a year) on the principal amount of the investment.
Compound Interest Interest that is applied to the accumulated value (principal plus interest of previous period). Compound Interest can be applied daily, monthly, quarterly, etc.
What is Compound Interest? - Definition, Formula & Examples (study.com)

12. Calculating Compound Interest
Principal amount
M = P*(1 + i)n
Final amount (including principal)
Interest rate per year
Number of times of compounding
Compound interest calculator:

13. Converting the interest rate?
If the compound periods are expressed monthly or daily you will need to convert the interest rate to match. For example, if an investment of $ is expected to compound monthly for 30 months, the interest rate provided (5%) will need to be converted to monthly too. Step 1: .05/12 = (round to six decimal places) Step 2: $4000 * ^30 = $